Asian Currency Shift: Won Appreciates 3% Amid Cheaper Oil and Easing Inflation Concerns
Investors have shifted their views on several Asian currencies in recent weeks, according to a Reuters poll. The South Korean won has seen its most significant appreciation in over 10 months, rising to an over 10-month high of 1,414.5 per dollar on Thursday.
The won's appreciation is attributed to a combination of strong corporate dollar supply and the authorities' willingness to resist excessive currency weakness, said Christopher Wong, currency strategist at OCBC.
Long view on the Chinese yuan was also the strongest in six weeks, with positioning on the Singapore dollar turning bullish for the first time in two months. The reduction in crude prices has eased pressure on energy-importing countries and their currencies.
Cheaper oil has alleviated concerns around import-driven inflation, leading to a decrease in short bets on most Asian currencies. Investors cut their bearish view on the Indian rupee, the Philippine peso, and the Thai baht, while turning slightly bullish on the Singapore dollar.